12/17/2008 @ 2:46PM

In Pictures: 10 Fraud Red Flags

Red Flag No. 1: Past Allegations of Fraud

Had investors done a background check on Tom Petters, chairman of the Petters Group Worldwide, who has been indicted for allegedly operating a multibillion-dollar fraud operation, they might have thought twice about investing with him. “Six years earlier Petters was sued for fraud and breach of contract,” says Ken Springer, former special agent of the FBI.